General Journal

Mrs. Sally has been declared insolvent and her estate has paid out 60cents in the Rand. The remainder of her R600 rand account has to be written off as irrecoverable. The general journal entry will be:

• Debit Bank R240

  Credit Debtors Control R240

• Debit Bank R600

  Credit Debtors Control R600

• Debit Bank R360

  Credit Debtors Control R360

• Debit Bank R360

  Credit Debtors Control R360

  Debit Bad Debts

  R240

  Credit Debtors Control R240

• Debit Bad Debts R240

  Credit Debtors Control R240

Interest on the R500 000 fixed deposit is capitalized quarterly at 20% per annum.

• Debit Bank

  Credit Interest Income

• Debit Bank

  Credit Interest on Fixed Deposit

• Debit Interest on Fixed Deposit

  Credit Fixed Deposit

• Debit Fixed Deposit

  Credit Interest on Fixed Deposit

Interest on the R500 000 fixed deposit is capitalized quarterly at 20% per annum. The General Journal Adjustment amount is:

• R100 000

• R33 333

• R25 000

• R525 000

Stationery of R500 has not been used at the end of the financial year.

• Debit Stationery

  Credit Creditors Control

• Debit Consumable Stores

  Credit Stationery

• Debit Stationery

  Credit Consumable Stores

• Debit Consumable Stores

  Credit Stationery on Hand

The final closing transfer journals are:

• Debit Capital

  Credit Profit-and Loss

• Debit Sales

  Credit Debtors Allowances

• Debit Capital

  Credit Drawings

  Credit Profit-and-Loss Account

• Debit Trading Account

  Credit Profit and Loss Account